Report: Musk’s xAI is burning through $1 billion per month
Elon Musk, the world’s richest man, has a history of burning piles of money in pursuit of eventual profits (see Tesla and SpaceX). The way he is running his AI startup, xAI, is no exception.
Bloomberg is reporting that Musk’s startup is spending $1 billion per month as it builds out its massive AI supercluster known as Colossus.
According to the report, Musk isn’t expecting to achieve profitability until 2027, when the startup is projecting $5.4 billion in revenue, and is borrowing $3.9 billion to keep stoking the cash bonfire. xAI — which now also owns the social network X — is still looking for revenue streams that can cover huge capex spending and high operating costs for the company’s only product, the Grok AI model.
According to the report, Musk isn’t expecting to achieve profitability until 2027, when the startup is projecting $5.4 billion in revenue, and is borrowing $3.9 billion to keep stoking the cash bonfire. xAI — which now also owns the social network X — is still looking for revenue streams that can cover huge capex spending and high operating costs for the company’s only product, the Grok AI model.
